UTMD Reports Financial Performance for Third Calendar

SALT LAKE CITY, UT, Oct. 25, 2022 (GLOBE NEWSWIRE) — through NewMediaWire – In the third calendar quarter (3Q) of 2022, regardless of vital value inflation, provide chain disruption, litigation bills and detrimental influence of a stronger U.S. Dollar on overseas forex gross sales, Utah Medical Products, Inc. (Nasdaq: UTMD) continued to attain monetary outcomes which have been higher than these anticipated in its starting of yr projections.

Currencies on this launch are denoted as $ or USD = U.S. Dollars; AUD = Australia Dollars; £ or GBP = UK Pound Sterling; C$ or CAD = Canadian Dollars; and € or EUR = Euros. Currency quantities all through this report are in hundreds, besides per share quantities and the place famous. 

Overview of Results
The following is a abstract comparability of 3Q and first 9 months (9M) of calendar 2022 with 3Q and 9M 2021 revenue assertion measures:

The above will increase in NI and EPS in keeping with U.S. Generally Accepted Accounting Principles (US GAAP) have been affected by a long-term deferred tax legal responsibility (DTL) enhance in 9M 2021 on the stability of Femcare identifiable intangible property (IIA) because of a future change enacted throughout 2Q 2021 in UK revenue tax charges. As stockholders might keep in mind, the DTL was initiated as of the 2011 acquisition of Femcare as a result of the expense from amortizing Femcare IIA, most of which is going on over a fifteen-year time span from the acquisition date, just isn’t tax-deductible within the UK. According to US GAAP, the long run tax influence of a change in DTL have to be acknowledged within the quarter through which a tax legislation change is enacted. In 2Q 2021, a $390 enhance in DTL over the remaining 5 amortization years occurred as a result of in June 2021, UK parliament ratified the Finance Minister’s plan to extend the UK company revenue tax fee from 19% to 25% starting on April 1, 2023.  For readability, the change impacts the deferred taxes for IIA to be amortized after April 1, 2023 till absolutely amortized as of 1Q 2026.

UTMD administration believes that the presentation of outcomes excluding the unfavorable deferred tax legal responsibility adjustment to its 9M 2021 revenue tax provision supplies significant supplemental data to each administration and buyers that’s extra clearly indicative of UTMD’s working outcomes. The non-US GAAP exclusion solely impacts Net Income and Earnings Per Share.

Excluding the 2Q 2021 deferred tax legal responsibility enhance and ensuing “one-time” tax provision enhance as a result of UK revenue tax fee change, the ensuing non-US GAAP 9M NI and EPS adjustments observe:

                                                 9M 2022 to 9M 2021
                                                (January-September)

In temporary, the non-US GAAP adjustments in NI and EPS have been extra according to adjustments in OI and EBT.

Worldwide (WW) consolidated gross sales in all 4 main product classes have been up in 3Q 2022 in comparison with 3Q 2021 regardless of a a lot stronger USD. The identical was true for 9M 2022, besides for gynecology class gross sales which have been about 1% decrease than in 9M 2021.  Sales invoiced in foreign exchange represented 19% of complete WW consolidated 3Q 2022 gross sales (when expressed in USD) and 24% of 9M 2022 complete WW consolidated gross sales. WW consolidated USD gross sales in 3Q 2022, as an alternative of being 3% larger, would have been 6% larger, and in 9M 2022, as an alternative of being 7% larger, would have been 10% larger than the USD gross sales which might have resulted utilizing the identical overseas forex change (FX) charges as within the prior yr’s identical intervals (“constant currency sales”). 

Profit margins in 3Q and 9M 2022 in comparison with 3Q and 9M 2021 observe:

Note:  The Net Income Margin is NI, after subtracting provisions for revenue taxes, divided by gross sales.

During 3Q 2022, the Company continued to comprehend substantial will increase in manufacturing prices, highlighted by incoming freight on uncooked supplies, which has doubled in comparison with 2021.  Part of the big enhance in freight prices is because of UTMD’s determination to buy bigger portions of uncooked supplies so as to hedge towards persevering with value inflation, decrease danger of disruption from unreliable provider efficiency and achieve out there amount reductions.  Thankfully, UTMD’s money place helps this kind of longer-term determination; and a lot for the “just-in-time” good manufacturing tenet of the previous.

Although UTMD has misplaced virtually no manufacturing capability in 2022 because of COVID-19 infections in its workforce, the impact of misguided authorities insurance policies and spending through the pandemic, which triggered restricted prepared employees, continues to linger.   

Although earnings margins usually have been squeezed, the identical 38% working revenue margin in 9M 2022 as in 9M 2021 means that administration has been profitable so far in responding to the problem. In this occasion, a stronger USD has helped by lowering overseas forex working bills in USD phrases, together with the GBP amortization of Identifiable Intangible Assets (IIA). The unlucky enhance in UTMD’s litigation prices, that are a part of General and Administrative (G&A) working bills, has perversely been offset by UTMD’s lack of ability in 2022 to rent replacements for departed G&A workers.

UTMD’s September 30, 2022 Balance Sheet, within the absence of debt, continued to strengthen with complete property up $2.8 million from the top of 2021. Ending Cash and Investments have been $69.5 million on September 30, 2022 in comparison with $61.0 million on December 31, 2021, after paying $2.1 million in money dividends to stockholders and buying $2.5 million in UTMD inventory throughout 9M 2022.  UTMD’s money stability elevated $2.35/ excellent share at September 30, 2022 from the top of 2021 with a 12% enhance in Net Income, whereas the inventory worth declined $14.69/ share. Stockholders’ Equity (SE) elevated $1.0 million within the nine-month interval from December 31, 2021 although $4.6 million in dividends and share repurchases diminished SE.   

Foreign forex change (FX) charges for Balance Sheet functions are the relevant charges on the finish of every reporting interval. The FX charges from the relevant overseas forex to USD for property and liabilities on the finish of 3Q 2022 in comparison with the top of calendar yr 2021 and the top of 3Q 2021 observe:

Revenues (gross sales) -3Q 2022
Total WW UTMD consolidated 3Q 2022 gross sales have been $383 (+3.0%) larger than in 3Q 2021. WW fixed forex gross sales have been $737 (+5.9%) larger. U.S. home gross sales have been 11.2% larger (clearly with none FX influence), and out of doors the U.S. (OUS) gross sales have been 10.0% decrease. Without the hurt of a stronger USD in changing overseas forex gross sales, OUS gross sales have been simply 2.7% decrease. Because of the comparatively quick span of time, outcomes for any given three month interval as compared with a earlier three month interval will not be indicative of comparative outcomes for the yr as a complete.

Domestic U.S. gross sales in 3Q 2022 have been $8,615 in comparison with $7,749 in 3Q 2021.  Domestic gross sales are invoiced in USD and never topic to FX fee fluctuations. The parts of home gross sales embody 1) “direct other device sales” of UTMD’s medical devices to user facilities (and med/surg stocking distributors for hospitals), excluding Filshie device sales, 2) “OEM sales” of parts and different merchandise manufactured by UTMD for different medical machine and non-medical machine firms, and three) “direct Filshie device sales”. UTMD separates Filshie machine gross sales from different medical machine gross sales direct to medical services due to their significance, and the acquisition historical past. Direct different machine gross sales, representing 47% of complete home gross sales, have been $342 (+9.2%) larger in 3Q 2022 than in 3Q 2021. OEM gross sales, representing 35% of complete home gross sales, have been $591 (+24.0%) larger. Direct Filshie machine gross sales, representing 17% of complete home gross sales, have been $68 (4.4%) decrease in 3Q 2022 in comparison with 3Q 2021.

OUS gross sales in 3Q 2022 have been 10.0% decrease at $4,340 in comparison with $4,823 in 3Q 2021. The lower in USD-denominated OUS gross sales was leveraged because of a stronger USD which subtracted $354 from OUS gross sales that have been invoiced in GBP, EUR, AUD and CAD foreign exchange in fixed forex phrases.  “Constant currency” gross sales means exchanging overseas forex gross sales into USD-denominated gross sales on the identical FX fee as was within the earlier time frame being in contrast. FX charges for revenue assertion functions are transaction-weighted averages. The weighted-average FX charges from the relevant overseas forex to USD throughout 3Q 2022 and 3Q 2021 for income functions observe:

                                                           3Q 2022           3Q 2021    Change

                                    GBP                 1.1760            1.3785      (14.7%)
                                    EUR                 1.0040            1.1793      (14.9%)
                                    AUD                 0.6828            0.7348      (  7.1%)
                                    CAD                 0.7663            0.7941      (  3.5%)

The weighted common unfavorable influence on 3Q 2022 overseas forex OUS gross sales was 12.4%, lowering reported USD gross sales by $354 relative to the identical overseas forex gross sales in 3Q 2021. In fixed forex phrases, overseas forex gross sales in 3Q 2022 have been 2.7% decrease than in 3Q 2021. The portion of OUS gross sales invoiced in foreign exchange in USD phrases have been 19.3% of complete consolidated 3Q 2022 gross sales in comparison with 26.7% in 3Q 2021.

OUS gross sales invoiced in foreign exchange are because of direct end-user gross sales in Ireland, the UK, France, Canada, Australia and New Zealand, and to shipments to OUS distributors of merchandise manufactured by UTMD subsidiaries in Ireland and the UK. Export gross sales from the U.S. to OUS distributors are invoiced in USD. Direct to end-user overseas forex OUS 3Q 2022 gross sales in USD phrases have been 4.9% decrease in Ireland, 16.2% decrease in Canada, 28.1% decrease in France, 14.8% decrease in AUS/NZ and 1.3% larger within the UK than in 3Q 2021. Sales to OUS distributors/ worldwide OEM clients have been 9.3% decrease in 3Q 2022 than in 3Q 2021.

Sales –9M 2022

Total consolidated 9M 2022 UTMD WW consolidated gross sales have been $2,567 (+7.1%) larger than in 9M 2021. Constant forex gross sales have been $3,529 (+9.8%) larger than in 9M 2021. U.S. home gross sales have been 8.3% larger and OUS gross sales have been 5.1% larger. Without the hurt of a stronger USD in changing overseas forex gross sales, OUS gross sales have been 12.2% larger.

Domestic U.S. gross sales in 9M 2022 have been $24,429 in comparison with $22,555 in 9M 2021. Direct different machine gross sales, representing 49% of complete home gross sales, have been $1,202 (+11.1%) larger in 9M 2022 than in 9M 2021. OEM gross sales, representing 35% of complete home gross sales, have been $1,358 (+19.2%) larger. Direct Filshie machine gross sales, representing 16% of complete home gross sales, have been $685 (14.8%) decrease in 9M 2022 in comparison with 9M 2021.

OUS gross sales in 9M 2022 have been 5.1% larger at $14,278 in comparison with $13,585 in 9M 2021. The enhance in USD-denominated OUS gross sales was diminished because of a stronger USD which subtracted $962 from OUS gross sales that have been invoiced in GBP, EUR, AUD and CAD foreign exchange (in fixed forex phrases). FX charges for revenue assertion functions are transaction-weighted averages. The weighted-average FX charges from the relevant overseas forex to USD throughout 9M 2022 and 9M 2021 for income functions observe:

                                               9M 2022       9M 2021     Change

                        GBP                 1.2488         1.3860        ( 9.9%)

                        EUR                 1.0672         1.1957        (10.7%)

                        AUD                 0.7058         0.7584        ( 6.9%)

                        CAD                 0.7797         0.7985        ( 2.3%)

The weighted-average unfavorable influence on 9M 2022 overseas forex OUS gross sales was 9.4%, lowering reported USD gross sales by $962 relative to the identical overseas forex gross sales in 9M 2021.  In fixed forex phrases, OUS gross sales in 9M 2022 have been 9.8% larger than in 9M 2021. The portion of OUS gross sales invoiced in foreign exchange in USD phrases was 23.9% of complete consolidated 9M 2022 gross sales in comparison with 27.0% in 9M 2021. Direct to end-user overseas forex OUS 9M 2022 gross sales in USD phrases have been 1.9% larger in Ireland, 10.9% decrease in Canada, 11.2% decrease in France, 14.4% larger within the UK and 23.5% decrease in AUS/NZ. Sales to OUS distributors/OEM clients have been 12.0% larger in 9M 2022 than in 9M 2021.

Gross Profit (GP)
GP outcomes from subtracting the prices of producing, high quality assurance and receiving supplies from suppliers from revenues. UTMD’s GP was $113 (+1.4%) larger in 3Q 2022 than in 3Q 2021, and $1,065 (+4.7%) larger in 9M 2022 than in 9M 2021. The share will increase in GP have been lower than the proportion will increase in revenues, nonetheless, which resulted in decrease GPMs within the desk above. UTMD doesn’t have long-term mounted worth agreements. Near the top of 2021, UTMD usually elevated product costs across-the-board by 6.5%. With the exception of OEM gadgets distinctive to particular clients, UTMD has not elevated product costs additional in 2022, resisting further will increase so as to not take part in serving to trigger systemic inflation. However, UTMD retains the power to lift costs on its specialised gadgets if manufacturing prices proceed to extend sooner than gross sales. 

Variable manufacturing prices, together with wages, uncooked supplies and freight, all elevated by double-digit percentages throughout 9M 2022, rather more quickly than UTMD’s worth will increase. Fixed prices have been diluted by larger gross sales. Over time, administration expects that a number of the 2022 value will increase will show transient, and to have the ability to regulate GPM efficiency again to UTMD’s extra typical GPMs of the previous.

Operating Income (OI)
OI outcomes from subtracting Operating Expenses (OE) from GP.  OI in 3Q 2022 was $5,141 in comparison with $5,098 in 3Q 2021, a rise of 0.8%; and was $14,720 in 9M 2022 in comparison with $13,750 in 9M 2021, a rise of seven.1%. 

OE are comprised of Sales and Marketing (S&M) bills, General and Administrative (G&A) bills and Product Development (R&D) bills. The following desk summarizes OE in 3Q and 9M 2022 in comparison with the identical intervals in 2021 by OE class:

Although a stronger USD helped cut back consolidated USD gross sales in 2022, it additionally helped cut back the USD-denominated OE of UTMD’s overseas subsidiaries by $130 in 3Q 2022 and $267 in 9M 2022. The following desk summarizes “constant currency” OE in 3Q and 9M 2022 in comparison with the identical intervals in 2021 by OE class:

The change in FX charges diminished USD-denominated 3Q 2022 OUS S&M expense by $10, and 9M 2022 OUS S&M expense by $24.

A division of G&A bills by location follows. G&A bills embody non-cash bills from the amortization of IIA related to the Filshie Clip System, which can be separated out under:

Over 60% of UTMD’s consolidated G&A bills in all intervals above have been from the non-cash expense of amortizing IIA associated to the Filshie Clip System. In different phrases, IIA amortization G&A expense declined to 12.1% of gross sales in 3Q 2022 from 13.2% of gross sales in 3Q 2021; and declined to 12.5% of gross sales in 9M 2022 from 13.8% of gross sales in 9M 2021.  This basically explains how UTMD was capable of keep its working revenue margin the identical in 9M 2022 as in 9M 2021 when its GPM was decrease because of inflationary value pressures along with larger litigation bills. Fixed USD IIA amortization bills are diluted as a share of gross sales as gross sales enhance.  The UK IIA amortization bills have been additional diminished as a share of USD gross sales because of the decrease USD/GBP FX fee.

OUS G&A bills in USD phrases have been $745 in 3Q 2022 in comparison with $869 in 3Q 2021. OUS G&A bills have been $2,379 in 9M 2022 in comparison with $2,619 in 9M 2021. The fixed forex desk under reveals how the stronger USD diminished OUS G&A bills for 3Q by $120 and 9M 2022 by $243:

Income Before Tax (EBT)
EBT outcomes from subtracting internet non‑working expense (NOE) or including internet non-operating revenue (NOI) from or to, as relevant, OI.  Consolidated 3Q 2022 EBT was $5,339 (41.2% of gross sales) in comparison with $5,157 (41.0% of gross sales) in 3Q 2021. Consolidated 9M 2022 EBT was $15,068 (38.9% of gross sales) in comparison with $13,880 (38.4% of gross sales) in 9M 2021. As UTMD’s Operating Income ratio was the identical in each 9M intervals, the advance in 9M EBT as a share of gross sales was because of larger internet NOI.     

NOE/NOI contains the mixture of 1) bills from mortgage curiosity and financial institution charges; 2) bills or revenue from losses or positive factors from remeasuring the worth of EUR money financial institution balances within the UK, and GBP money balances in Ireland, in USD phrases; and three) revenue from hire of underutilized property, funding revenue and royalties acquired from licensing the Company’s expertise. Negative NOE is NOI.  Net NOI in 3Q 2022 was $198 in comparison with $59 NOI in 3Q 2021. Net NOI in 9M 2022 was $348 in comparison with $130 NOI in 9M 2021.  UTMD realized a $7 remeasured forex stability loss in 9M 2022 in comparison with a $13 loss in 9M 2021. With larger money balances and rates of interest in 2022 in comparison with 2021, UTMD acquired $179 extra in curiosity revenue. NOI generated in Ireland from renting unused warehouse house to a 3rd social gathering yielded an additional enhance in 9M 2022 NOI in comparison with 9M 2021.      

EBITDA is a non-US GAAP metric that measures profitability efficiency with out factoring in results of financing, accounting selections concerning non-cash bills, capital expenditures or tax environments. Excluding the noncash results of depreciation, amortization of intangible property and inventory possibility expense, 3Q 2022 consolidated EBT excluding the remeasured financial institution stability forex achieve or loss and curiosity expense (“adjusted consolidated EBITDA”) was $7,111 in comparison with $7,024 in 3Q 2021. 

Adjusted consolidated EBITDA was $20,487 in 9M 2022 in comparison with $19,495 in 9M 2021, a 5.1% enhance. Adjusted consolidated EBITDA for the earlier 4 calendar quarters (TTM) was $27,522 as of September 30, 2022.  Based on 9M 2022 precise working outcomes, administration expects adjusted consolidated EBITDA of about $28 million for the complete yr 2022, according to earlier projections.

UTMD’s adjusted consolidated EBITDA as a share of gross sales was 54.9% in 3Q 2022 in comparison with 55.9% in 3Q 2021, reflecting the decrease GPM.  Similarly, UTMD’s adjusted consolidated EBITDA as a share of gross sales was 52.9% in 9M 2022 in comparison with 53.9% in 9M 2021.

Management believes that this working efficiency metric supplies significant supplemental data to each administration and buyers and confirms UTMD’s ongoing wonderful monetary working efficiency throughout a troublesome financial time frame.

UTMD’s non-US GAAP adjusted consolidated EBITDA is the sum of the weather within the following desk, every ingredient of which is a US GAAP quantity:

Note
All UTMD revenue assertion measures from GP by way of EBT (and together with non-US GAAP adjusted consolidated EBITDA above) for each 2022 and 2021 time intervals have been unaffected by the enacted adjustments within the UK company revenue tax fee.

Net Income (NI)
NI in 3Q 2022 of $4,280 (33.0% of gross sales) was 1.8% larger than NI of $4,206 (33.5% of gross sales) in 3Q 2021. NI in 9M 2022 of $11,918 (30.8% of gross sales) was 11.8% larger than the US GAAP NI of $10,656 (29.5% of gross sales) in 9M 2021.

NI per US GAAP in 9M 2021 was diminished by an extra tax provision expense required to be recorded within the quarter through which a tax change is enacted, because of an adjustment to UTMD’s deferred tax legal responsibility (DTL).  The DTL outcomes from the tax impact of not having the ability to deduct remaining future amortization expense of Femcare IIA.  In 2Q 2021, as a result of the UK reset its company tax fee from 19% to 25% starting with 2Q 2023, it triggered UTMD to need to e book an extra $390 in its 2Q 2021 revenue tax provision that represents the extra tax which shall be paid within the UK over the then remaining 5 yr lifetime of the 2011 Femcare acquisition IIA. Excluding the $390 DTL enhance in 2Q 2021, which diminished 9M 2021 NI by that very same quantity, 9M 2022 NI was 7.9% larger than 9M 2021 non-US GAAP NI of $11,047 (30.6% of gross sales), which administration believes is extra indicative of working outcomes.

The common consolidated revenue tax provisions (as a % of the identical interval EBT) per US GAAP in 3Q 2022 and 3Q 2021 have been 19.8% and 18.4% respectively, and have been 20.9% and 23.2% in 9M 2022 and 9M 2021 respectively. Please recall that the 9M 2021 revenue tax provision was inflated by $390 for the 2Q 2021 DTL adjustment. The non-US GAAP revenue tax provision fee was 20.4% for 9M 2021.

The consolidated revenue tax provision fee varies as the combo in taxable revenue amongst U.S. and overseas subsidiaries with differing revenue tax charges differs from interval to interval. UTMD has persistently paid thousands and thousands of {dollars} in revenue taxes yearly. The fundamental company revenue tax charges in every of the sovereignties have been the identical as within the prior yr.

Earnings per share (EPS). 
Diluted EPS in 3Q 2022 have been $1.178 in comparison with $1.150 in 3Q 2021, a 2.4% enhance. Diluted EPS in 9M 2022 have been $3.265 in comparison with US GAAP diluted EPS of $2.915 in 9M 2021, a 12.0% enhance.  Backing out the 2021 “one-time” revenue tax provision enhance as a result of DTL adjustment, non-US GAAP diluted EPS in 9M 2021 have been $3.021. The 8.1% enhance in 9M 2022 diluted EPS in comparison with non-US GAAP diluted EPS in 9M 2021 was according to the rise in EBT, given a barely larger common consolidated revenue tax fee. Diluted shares have been 3,634,235 in 3Q 2022 in comparison with 3,657,733 in 3Q 2021. The decrease diluted shares in 3Q 2022 have been the results of UTMD shares repurchased in 2Q 2022, offset barely by worker choices exercised.

The variety of shares used for calculating 3Q 2022 EPS was larger than September 30, 2022 precise excellent shares due to a time-weighted calculation of common excellent shares plus dilution from unexercised worker and director choices. Outstanding shares on the finish of 3Q 2022 have been 3,625,195 in comparison with 3,654,737 on the finish of calendar yr 2021. The distinction was because of 30,105 shares repurchased in 2Q 2022 much less 563 shares in worker possibility workout routines throughout 9M 2022. For comparability, precise excellent shares have been 3,648,984 on the finish of 3Q 2021. The complete variety of excellent unexercised worker and out of doors director choices at September 30, 2022 was 49,895 at a mean train worth of $69.00, together with shares awarded however not but vested.  This compares to 59,869 unexercised possibility shares on the finish of 3Q 2021 at a mean train worth of $68.74/ share, together with shares awarded however not vested.

The variety of shares added as a dilution issue for 3Q 2022 was 9,220 in comparison with 10,933 in 3Q 2021. The variety of shares added as a dilution issue for 9M 2022 was 9,424 in comparison with 10,685 in 9M 2021. No choices have been awarded in 2021 or by way of 9M 2022.  UTMD paid $1,051 ($0.290/share) in dividends to stockholders in 3Q 2022 in comparison with $1,039 ($0.285/ share) paid in 3Q 2021. Dividends paid to stockholders throughout 3Q 2022 have been 25% of  3Q 2022 NI. UTMD paid $2,111 ($0.290/share) in dividends to stockholders in 9M 2022 in comparison with $3,116 ($0.285/ share) paid in 9M 2021. The distinction was because of an earlier fee of a particular dividend on the finish of 2021 as an alternative of in 1Q 2022. No UTMD shares have been bought within the open market in 2021. In 2Q 2022, the Company bought 30,105 UTMD shares at a mean value of $82.88/ share. The Company retains the sturdy want and monetary skill for repurchasing its shares at a worth it believes is enticing for remaining stockholders.

UTMD’s closing share worth on the finish of 3Q 2022 was $85.31, down from the closing worth of $85.90 three months earlier on the finish of 2Q 2022, and the closing worth of $100.00 9 months earlier on the finish of 2021.    

Balance Sheet.
At September 30, 2022, UTMD’s money and investments elevated $8,537 to $69,511 from $60,974 on the finish of 2021, regardless of utilizing money throughout 9M 2022 to pay $2,111 in dividends to stockholders, $2,495 to repurchase UTMD shares, $771 to buy new manufacturing tools, plus adjustments in working capital together with $1,713 to develop inventories to hedge towards provide chain disruption and $903 larger accounts receivable because of larger gross sales exercise. The internet enhance in money was supplied by UTMD’s wonderful working 9M EBITDA of $20,487. At September 30, 2022, Net Intangible Assets decreased to twenty.2% of complete consolidated property from 27.2% on December 31, 2021.  In addition to $4,837 in amortization, a stronger USD diminished the USD worth of Femcare’s GBP IIA. 

Financial ratios as of September 30, 2022 which can be of curiosity to stockholders observe:
1)   Current Ratio = 13.4
2)   Days in Trade Receivables (based mostly on 3Q 2022 gross sales exercise) = 41.8
3)   Average Inventory Turns (based mostly on 3Q 2022 common stock and CGS) = 2.4
4)   2022 YTD ROE (earlier than dividends) = 15%

Investors are cautioned that this press launch comprises ahead wanting statements and that precise occasions might differ from these projected.  Risk elements that might trigger outcomes to vary materially from these projected embody international financial situations, market acceptance of merchandise, regulatory approvals of merchandise, regulatory intervention in present operations, authorities intervention in healthcare normally, tax reforms, the Company’s skill to effectively manufacture, market and promote merchandise, cybersecurity and overseas forex change charges, amongst different elements which were and shall be outlined in UTMD’s public disclosure filings with the SEC.  UTMD’s 3Q 2022 SEC Form 10-Q shall be filed on or earlier than November 15, 2022, and could be accessed on www.utahmed.com.

Utah Medical Products, Inc., with specific curiosity in well being care for girls and their infants, develops, manufactures and markets a broad vary of disposable and reusable specialty medical gadgets acknowledged by clinicians in over 100 nations world wide as the usual for acquiring optimum long run outcomes for their sufferers.  For extra details about Utah Medical Products, Inc., go to UTMD’s web site at www.utahmed.com.

Utah Medical Products, Inc.

INCOME STATEMENT, Third Quarter (three months ended September 30)

(in hundreds besides earnings per share):

INCOME STATEMENT, First Nine Months (9 months ended September 30)

(in hundreds besides earnings per share):

BALANCE SHEET